Kumpulan Perangsang Selangor Bhd’s subsidiary Century Bond Bhd (CBB) has entered into a joint venture (JV) with China-based Honda Printing Holdings Ltd to produce offset carton boxes for the manufacturing sector.
CBB’s wholly owned unit Pro Pulp Packages Sdn Bhd and Honda Printing will form the JV with Pro Pulp holding a 60% stake and Honda Printing the rest.
The JV with Honda Printing is expected to allow CBB to expand its value-chain further into offset carton boxes, where the box’s outer layer is laminated by a printed sheet.
Kumpulan Perangsang Selangor CEO Ahmad Fariz Hassan said in a release yesterday, the JV combines the expertise of two companies in the carton boxes’ downstream production and design, and printing’s upstream services.
“The JV would have a strong cost advantage compared to other players, leveraging on CBB’s current expertise in producing the raw material of carton boxes,” he said in the statement.
The JV company is set to begin operations within CBB’s premises in Johor and take over Honda Printing’s existing supply contracts to customers with additional available production capacity, granting the companies with the opportunity to expand and serve manufacturers nationwide.